While Elon Musk rushes to restore Tesla’s reputation and keep promises of autonomous driving technology, vehicle sales for the company continued to fall in the last quarter.
Tesla delivered 384,122 vehicles during the quarter to June, down 13%, compared to 443,956 deliveries a year ago.
The drop in deliveries is the result of increased competition, demand for electric vehicle tray and brand damage triggered by the role of Musk in the Trump administration, experts said.
Although Tesla remains the dominant force in the Electric vehicle marketLarge manufacturers, including Ford and Chevy, have published their own electric vehicles. Startups like Irvine Rivian have also reduced Tesla’s market share.
At the same time, the growth in demand for electric vehicles has flattened as the market becomes saturated, analysts said.
In February, Tesla dominated the list of brands that lost the most resale value from one year to the next, according to Karl Brauer, analyst at Iseecars.com. The price of a Tesla Model S and the Used Y model fell each by around 16% in February compared to the previous year, he said.
“It may be that no one wants to buy them more, or there is a massive influx available, or both,” said Brauer in an interview in March.
Rivian reported the lower than expected production numbers on Wednesday, reporting problems throughout the industry. The company gathered nearly 6,000 trucks, seen and vans in the second quarter, not exceeding Wall Street estimates of more than 11,300.
Tesla’s disappointing delivery numbers follow a first bumpy quarter, which experienced a 71% drop in profits and a 9% drop in income compared to the previous year.
Although Musk has left his post as government, helping to lead the government’s ministry for efficiency, his time at the White House has alienated some of his liberal customers.
Tesla drivers who have been attracted to the environmental advantages of electric vehicles are Grond Gearrasted By the association of their cars with Musk, the Times reported. Several celebrities have abandoned their teslas as part of a public position against the company.
The brand’s damage has spread outside the United States in Europe, where monthly sales in 32 countries fell by almost 50% in April. Tesla analyst, Dan Ives, predicted that 5% to 10% of the brand’s damage suffered during the Musk’s passage to the White House will be permanent.
“Tesla has become a political symbol in the world and it is not a good thing,” said Ives last month.
Tesla is increasingly putting its future on autonomous technology and autonomous taxi operations. Last month, the company began to selectively test the vehicles of the autonomous model in Austin, Texas.
According to the claims that Musk has made, Tesla drivers will one day be able to sleep in their car because he takes them across the country. Tesla Robotaxis will travel the streets of the city, and humanoid robots nicknamed Optimus will perform daily tasks.
“Musk’s absolute priority should be autonomy and robotics,” said Ives. “With these technologies, I believe that Tesla’s market capitalization could reach 2 dollars.”
The company is currently estimated at $ 989 billion. Tesla’s shares fell by more than 16% this year.
